Positive prospects for Nam economy

THE Namibian economic outlook looks good, with positive growth expected from nearly all sectors of the economy, to lead to a projected economic growth of 4,8 per cent for 2007.

This was the view given by the Bank of Namibia Director of Research, Dr John Steytler, during the central bank’s presentation yesterday. The economy is estimated to have grown by 4,6 per cent last year.This figure would be confirmed when the Bank of Namibia releases its annual report later this month.The foreseen Namibian economic growth is in tandem with the robust global growth including sub Saharan Africa.The global economy is expected to continue growing at a pace of around five per cent this year.Painting a rosy picture of the economic outlook for the year, Steytler told delegates who gathered at the central bank for his presentation that this result was due to an increase in diamond production and continued growth of the telecommunications, retail trade and financial sectors.”This sustained growth would be on the back of increase in diamond and uranium production, improvement in fishing sector output, as well as the continued strong growth in the tertiary sector,” he said.Steytler also said there would be growth in the agricultural sector despite the foreseen drought – but mainly due to an increase in marketed livestock, hotel and restaurant sector, and in manufacturing due to progress in fish output and meat processing.Construction sector growth is estimated at 9,3 per cent on the back of major projects like the Caprivi power link.However, inflation is expected to continue rising to around six per cent this year, from the average rate of 5,1 per cent during 2006.Steytler said although this was the expected outlook, there, however, still factors that posed a risk to this positive forecast.The volatile international crude oil prices could have a negative impact on inflation and on the fishing sector, which has been slowly picking up as a result on bigger catch and a weaker exchange rate.”The downside risks to the forecast would be the volatility in the prices for Namibia’s main export commodities, exchange rate, oil prices and adverse weather conditions,” said Stetyler.At the same occasion the BoN Deputy Governor, Paul Hartmann, launched the eighth annual symposium publication which focuses on the assessment of foreign direct investment versus domestic investment in Namibia.The booklet contains conclusions of what emanated from the Bank of Namibia’s annual symposium of last year.The economy is estimated to have grown by 4,6 per cent last year.This figure would be confirmed when the Bank of Namibia releases its annual report later this month.The foreseen Namibian economic growth is in tandem with the robust global growth including sub Saharan Africa.The global economy is expected to continue growing at a pace of around five per cent this year.Painting a rosy picture of the economic outlook for the year, Steytler told delegates who gathered at the central bank for his presentation that this result was due to an increase in diamond production and continued growth of the telecommunications, retail trade and financial sectors.”This sustained growth would be on the back of increase in diamond and uranium production, improvement in fishing sector output, as well as the continued strong growth in the tertiary sector,” he said.Steytler also said there would be growth in the agricultural sector despite the foreseen drought – but mainly due to an increase in marketed livestock, hotel and restaurant sector, and in manufacturing due to progress in fish output and meat processing.Construction sector growth is estimated at 9,3 per cent on the back of major projects like the Caprivi power link.However, inflation is expected to continue rising to around six per cent this year, from the average rate of 5,1 per cent during 2006.Steytler said although this was the expected outlook, there, however, still factors that posed a risk to this positive forecast.The volatile international crude oil prices could have a negative impact on inflation and on the fishing sector, which has been slowly picking up as a result on bigger catch and a weaker exchange rate.”The downside risks to the forecast would be the volatility in the prices for Namibia’s main export commodities, exchange rate, oil prices and adverse weather conditions,” said Stetyler.At the same occasion the BoN Deputy Governor, Paul Hartmann, launched the eighth annual symposium publication which focuses on the assessment of foreign direct investment versus domestic investment in Namibia.The booklet contains conclusions of what emanated from the Bank of Namibia’s annual symposium of last year.